South Korean Police Break Up “International Crypto Fraud” Ring, Seizing $1.2 Million

In a recent crackdown, the South Korean authorities have dealt a significant blow to an alleged “international” crypto scam operation, freezing over $12 million and detaining 49 individuals suspected of participating in the fraudulent scheme.

According to the report, the Cyber Investigation Department of the Seoul Metropolitan Police Agency orchestrated the takedown, apprehending a total of 49 individuals, including the suspected heads of six separate organizations. 

These individuals were targeted for allegedly orchestrating an elaborate crypto fraud venture, specifically running a counterfeit crypto investment platform that solicited unsuspecting victims.

The suspected scheme primarily targeted individuals outside South Korea, using a fraudulent crypto asset investment website operating mostly from the Philippines. Operating from September 2020 to April 2021, the group managed to amass over $11.5 million from at least 253 victims, utilizing leaked personal information from the internet to prey on potential investors.

The elaborate scam involved various specialized teams within each of the six organizations, operating together in a calculated, deceptive manner. Some acted as phony investors within chat rooms, flaunting fictitious profits to attract victims, while others impersonated crypto exchange employees, promising substantial investment returns.

Upon initial, smaller investments, victims were lured with a seemingly attractive x1.5 return, presented as “withdrawable” returns to gain trust. This facade facilitated larger investments, promising even higher profits of x3 to x5. 

However, when individuals attempted to withdraw their funds, they were told that additional deposits, taxes, and fees were required before releasing their investments.

If the victims raised concerns or resistance, a secondary team threatened them with impending regulatory investigations. Ultimately, victims were abruptly cut off from the chat rooms, leaving them stranded without access to the fraudulent exchange platform.

Rise in Crypto Frauds

This latest crypto scam echoes an apparent uptick in fraudulent activities in the digital currency sphere. A police spokesperson emphasized vigilance in dealing with digital assets, particularly warning against promises of unusually high profits.

“We will crack down thoroughly on vicious financial crimes that are causing trouble for ordinary people. [Criminals prey on] victims in difficult economic situations due to rising inflation and high interest rates.”

the police spokesperson said.

The crackdown marks a significant step in the ongoing battle against financial crimes that tend to exploit individuals facing economic challenges and highlights the need for caution while engaging in virtual asset investments, given the rising inflation and high-interest rates.

“The public now needs to be especially careful about making investments in virtual assets, stocks, futures, and so on. Criminals often use the promise of high profits as bait.”

the spokesperson warned.

The police’s actions aimed to curtail these financial wrongdoings, ensuring the protection of the public against financial predators and deceitful schemes.